Padding and overflow causes gaps

When a non-visible overflow, and either left or right padding are used on an element, Mozilla/Firefox over compensates for the required height of the element, and leaves gaps underneath the element's contents.

I'm using FireFox 1.0.4, and the bug is clearly visible. Opening the test page, I see a red bar that's the same height as the font; by resizing the window, I can get it to disappear or get extremely large (about 15 lines of text worth). Interestingly enough, if I resize vertically, the text suddenly wraps to two lines, and the red appears on the right, rather than under the text.

From the comments in the bugzilla bug, others have verified it as well, though the latest nightly build (in other words, not officially released) is apparently fixed. So, presumably, the bug was introduced after 1.0, and will be fixed in the next update